Does Subsidizing Fertilizer Increase Yields? Evidence from Malawi

Despite their strain on government and donor budgets, fertilizer subsidies have once again become popular policy tools in several Sub-Saharan Africa countries as a potential way to increase yields in staple crops like maize. Policy makers often assume that farmers who receive the subsidy will achieve yield responses that are similar to those obtained by farmers who pay commercial prices for the input. This notion has not been verified empirically. Our study uses panel data from Malawi, a country that recently implemented a fertilizer subsidy program, to compare maize yield response to fertilizer from farmers who received subsidized fertilizer with yield responses from those who paid commercial prices for the input. Descriptive results indicate that maize plots using commercial fertilizer obtain higher yields per kilogram of fertilizer than maize plots that used subsidized fertilizer. Conversely, the results obtained using a fixed-effects estimator indicate that when other factors are controlled for, maize plots that use subsidized fertilizer obtain a higher yield response than other plots. The results seems to be influenced by a group of farmers who used no fertilizer before the subsidy program began, but used subsidized fertilizer after the program was implemented. This group of farmers obtained significantly higher yields in the year when they receive the subsidy than did the rest of the farmers in the sample during that year. These findings indicate that in order to be effective, government officials should specifically target fertilizer subsidies to farmers who lack access to commercial markets or would not otherwise find it profitable to purchase the input.Malawi, Fertilizer Subsidies, Production Function, Crop Production/Industries,

Malawi’s Maize Marketing System

National food security in Malawi depends on improving the performance of maize markets. Ensuring that grain is consistently available at tolerable prices is crucial for consumers’ food security. At the same time, surplus producing farmers need to receive farm-gate prices consistently above production costs to intensify the use of fertilizer and other productivity enhancing technologies in a sustainable manner. These concerns give rise to the classic food price dilemma for policy makers in Malawi: how to keep prices low enough to ensure low income consumers’ access to food while keeping prices high enough to promote farm production incentives. These tensions cannot be avoided but they can be relieved through reducing food marketing margins, which shrink the wedge between producer and consumer prices. Moreover, Malawi faces major political and economic problems associated with food price instability especially given its dependence on rain fed agriculture in a region prone to drought. These issues show that improving the performance of maize markets is at the core of achieving sustainable food security and poverty reduction in Malawi.food security, Malawi, maize, marketing, food policy, Agricultural and Food Policy, Community/Rural/Urban Development, Food Security and Poverty, International Development, Marketing, q12, q18,

The effects of attribute non-attendance, simple validation questions, and their interactions on willingness to pay estimates for meat choice experiments

During an online survey, respondents were randomly assigned to a choice experiment for either pork chops or chicken breasts and were then explicitly asked which attributes they did not consider while making their choices. A simple validation question, which directed respondents to choose a specific answer, was also included. Accounting for either stated or inferred attribute non-attendance alone had no statistically significant effect on willingness-to-Pay (WTP) estimates. Those who passed the validation question had statistically significant and higher WTP for some attributes of pork chops and chicken breasts when the variable was interacted with inferred or stated attribute non-attendance (ANA). While use of a validation question appears promising, more research is needed on this point before it can be concluded that ANA alone has no impact on the WTP estimates for food choice experiments

Productivity and welfare effects of Nigeria's e-voucher-based input subsidy program

Article purchased; Available online: 9 May 2017In an attempt to go beyond the so called “smart” subsidies, Nigeria has embarked on a potentially innovative mobile phone-based input subsidy program that provides fertilizer and improved seed subsidies through electronic vouchers. In this article, we examined the productivity and welfare effects of the program using household-level data from rural Nigeria. The article employed instrumental variable regression approach to control for the potential endogeneity of the input subsidy program. Our results suggest that the program is effective in improving productivity and welfare outcomes of beneficiary smallholders. The size of the estimated effects suggests a large improvement in productivity and welfare outcomes. Moreover, the distributional effects of the program suggest no heterogeneity effects based on gender and farm land size. These results are robust to using alternative measurements of program participation. The benefit–cost ratio of 1.11 suggests that the program is marginally cost-effective. Overall, our results suggest that while improving average productivity is a good outcome for improving food security, improving the distributional outcome of the program by targeting the most disadvantaged groups would maximize the program’s contribution to food security and poverty reduction

Food safety and adverse selection in rural maize markets

Open Access ArticleWithout enforced standards or reliable third‐party verification, food safety threats such as pesticide residues and aflatoxin contamination are generally unobservable or only partially observable to both buyers and sellers, especially of staple foods in rural maize markets in sub‐Saharan Africa. As a result, sellers have more information about food quality than do buyers. Such information asymmetries can impede market development and undermine human health. We study farm household behaviour in the context of imperfect food safety information. We pool observations obtained from 707 food storage containers maintained by 309 farm households in Benin, surveyed following the maize harvests of 2011/2012 and 2013/2014. Our results indicate that when a household perceives a food safety risk associated with application of insecticides, on average it is 33 percentage points less likely to apply insecticides to maize it intends to consume than it is to maize it intends to sell. These individuals are also more likely to sell maize than households without food safety concerns. Results highlight the potential value of improved storage technologies and quality control to promote market transactions and reduce hidden health risks

Does improved storage technology promote modern input use and food security? Evidence from a randomized trial in Uganda

We use panel data from a randomized controlled trial (RCT) administered among 1200 smallholders in Uganda to evaluate input use and food security impacts of an improved maize storage technology. After two seasons, households who received the technology were 10 percentage points more likely to plant hybrid maize varieties that are more susceptible to insect pests in storage than traditional lower-yielding varieties. Treated smallholders also stored maize for a longer period, reported a substantial drop in storage losses, and were less likely to use storage chemicals than untreated cohorts. Our results indicate that policies to promote soft kernel high-yielding hybrid maize varieties in sub-Saharan Africa should consider an improvement in post-harvest storage as a complementary intervention to increase adoption of these varieties

Storage losses, liquidity constraints, and maize storage decisions in Benin

Article purchasedThis article estimates how storage losses from mold, insects, and other pests, combined with liquidity constraints, influence a smallholder farm household's decision to store maize on farm after harvest. We analyze panel data from 309 smallholders in Benin covering the 2011 and 2013 harvest seasons. Results suggest that smallholders are driven to sell at harvest time for different reasons, depending on their motivation for storing. In households that report direct consumption as their primary goal for storing maize, liquidity constraints, not storage losses, reduce the amount they store. In contrast, households that store maize with the intention of selling it later in the year appear unaffected by liquidity constraints. Instead, these households store less when they expect to lose more during storage. These results suggest that policies to provide liquidity will be more helpful in motivating storage among consumption‐oriented households. Households motivated to store for later sale will benefit from modern storage technologies that mitigate the operational costs associated with storage losses

The effects of attribute non-attendance, simple validation questions, and their interactions on willingness to pay estimates for meat choice experiments

Abstract: During an online survey, respondents were randomly assigned to a choice experiment for either pork chops or chicken breasts and were then explicitly asked which attributes they did not consider while making their choices. A simple validation question, which directed respondents to choose a specific answer, was also included. Accounting for either stated or inferred attribute non-attendance alone had no statistically significant effect on willingness-to-Pay (WTP) estimates. Those who passed the validation question had statistically significant and higher WTP for some attributes of pork chops and chicken breasts when the variable was interacted with inferred or stated attribute non-attendance (ANA). While use of a validation question appears promising, more research is needed on this point before it can be concluded that ANA alone has no impact on the WTP estimates for food choice experiments

Do insect and mold damage affect maize prices in Africa? Evidence from Malawi

Economic losses to stored grain can potentially come from both quantity losses and quality losses in the form of price discounts for damage from insects and mold. This article uses choice experiments conducted with physical samples of maize to estimate discounts for damaged grain among maize traders in Malawi. Using the Equality Constrained Latent Class method to correct for non-attendance to the price attribute, we find that traders place a statistically and economically significant discount on insect-damaged maize. We estimate that a 1% increase in maize damage reduces the price of maize by 2.8% to 3.6%, depending on damage level. We discuss the implications of these results for farmers’ incentives to adopt improved storage technologies that can reduce post-harvest losses

Three red suns in the sky: A transiting, terrestrial planet in a triple M-dwarf system at 6.9 pc

We present the discovery from Transiting Exoplanet Survey Satellite (TESS) data of LTT 1445Ab. At a distance of 6.9 pc, it is the second nearest transiting exoplanet system found to date, and the closest one known for which the primary is an M dwarf. The host stellar system consists of three mid-to-late M dwarfs in a hierarchical configuration, which are blended in one TESS pixel. We use MEarth data and results from the Science Processing Operations Center data validation report to determine that the planet transits the primary star in the system. The planet has a radius of ${1.38}_{-0.12}^{+0.13}$ ${R}_{\oplus }$, an orbital period of ${5.35882}_{-0.00031}^{+0.00030}$ days, and an equilibrium temperature of ${433}_{-27}^{+28}$ K. With radial velocities from the High Accuracy Radial Velocity Planet Searcher, we place a 3σ upper mass limit of 8.4 ${M}_{\oplus }$ on the planet. LTT 1445Ab provides one of the best opportunities to date for the spectroscopic study of the atmosphere of a terrestrial world. We also present a detailed characterization of the host stellar system. We use high-resolution spectroscopy and imaging to rule out the presence of any other close stellar or brown dwarf companions. Nineteen years of photometric monitoring of A and BC indicate a moderate amount of variability, in agreement with that observed in the TESS light-curve data. We derive a preliminary astrometric orbit for the BC pair that reveals an edge-on and eccentric configuration. The presence of a transiting planet in this system hints that the entire system may be co-planar, implying that the system may have formed from the early fragmentation of an individual protostellar core.Accepted manuscrip